According to US Senator Richard Blumenthal, a group of banking giants led by JPMorgan Chase, Wells Fargo and Bank of America are playing a dangerous game with their customers’ money.
The Democrat and chairman of the Permanent Subcommittee on Investigations released a statement as Congress approaches a hearing on millions of dollars in fraud on the Zelle payment network.
Senator Blumenthal says the banking giants, which are majority owners of Zelle, will be given a chance to explain why they failed to “fully protect” victims of fraud on the widely used payment network.
“Year after year, Zelle and its owner banks have failed to fully protect consumers from a growing threat of scams and fraud.
The banks play “heads I win, tails you lose” while sophisticated scammers reap the rewards and consumers lose hard-earned money.
During this hearing, Zelle and its three largest banks will finally be held accountable for their unwillingness to make consumers whole when they fall victim to scams and fraud on Zelle. Immediate payments should not mean immediate losses for consumers.”
Senator Blumenthal says the Subcommittee found that customers lost $456 million to Zelle scams in 2022, and banks only refunded $341 million.
Cameron Fowler, the CEO of Zelle’s parent company Early Warning Services, will also testify at the upcoming hearing, which will take place on Tuesday, July 23.
He will be joined by Melissa Feldsher, managing director and head of commerce enablement at JPMorgan Chase; Mark Monaco, head of global payments solutions at Bank of America; and Adam Vancini, executive vice president and head of payments for consumer, retail and business banking at Wells Fargo.
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